Price and Volume
5Y CAGR
Compound annual growth rate (CAGR) is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each year of the investment’s lifespan. The CAGR isn’t a true return rate, but rather a representational figure. It is essentially a number that describes the rate at which an investment would have grown if it had grown the same rate every year and the profits were reinvested at the end of each year. In reality, this sort of performance is unlikely. However, CAGR can be used to smooth returns so that they may be more easily understood when compared to alternative investments. For example, if a stock’s 5Y CAGR is 20%, it implies if one had invested 100 Rs in the stock 5 years back and never withdrawn any amount of gains or losses, they would have made 100*(1 + 20/100)^5 = 248.832
Face value
Face value is a financial term used to describe the nominal value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate.
The cumulative face value of the entirety of a company’s stock shares designates the legal capital a corporation is obligated to maintain. Only the above-and-beyond capital may be released to investors, in the form of dividends. In essence, the funds that cover the face value, function as a type of default reserve.
The face value of a stock does not denote the actual market value, which is determined based on principles of supply and demand, often governed by the figure at which investors are willing to buy and sell a particular security, at a specific point in time. In fact, depending on market conditions, the face value and market value usually have no correlation.
Close Price
This is the close price of the stock on the last day it traded
1M Return
This is the percentage change in the company’s stock price over the previous 4 weeks
6M Return
This is the percentage change in the company’s stock price over the previous 26 weeks
1Y Return
This is the percentage change in the company’s stock price over the previous 52 weeks
1M Return vs Nifty
This is the percentage change in the company’s stock price minus percentage change in Nifty over the previous 4 weeks
A positive output, when the market has moved up over the previous 4 weeks, indicates that the company’s stock price moved up at a faster pace compared to the pace of market movement. A positive output, when market has dropped during the previous 4 week, indicates that either the stock price moved up defying the market or it dropped at a slower pace than the market
A negative number indicates that either the market rose at a faster pace compared to stock price movement or dropped slower compared to stock price
6M Return vs Nifty
This is the percentage change in the company’s stock price minus percentage change in Nifty over the previous 26 weeks
| 6 month % returns | 6 month return vs Nifty | |
|---|---|---|
| Stock A | 12.0% | 4.7% |
| Stock B | -2.8% | -10.1% |
| Nifty | 7.3% |
As can been seen from the above table, if the returns on the stock is more than Nifty returns, then the output is positive. If the stock’s returns is lower than the Nifty returns the output is negative.
Price momentum is the rate of change in price of a particular stock. Momentum investing is a strategy that tries to understand the existing trend in the market and attempts to capitalize on the same. So if a momentum investor feels that the bull run in the market will continue he/she will buy stocks which have outperformed the index. If he/she feels that the market is about to enter bear phase, then it makes sense to sell stocks that have under performed the index
1Y Return vs Nifty
This is the percentage change in the company’s stock price minus percentage change in Nifty over the previous 52 weeks
| 12 month % returns | 12 month return vs Nifty | |
|---|---|---|
| Stock A | 12.0% | 4.7% |
| Stock B | -2.8% | -10.1% |
| Nifty | 7.3% |
As can been seen from the above table, if the returns on the stock is more than Nifty returns, then the output is positive. If the stock’s returns is lower than the Nifty returns the output is negative.
Price momentum is the rate of change in price of a particular stock. Momentum investing is a strategy that tries to understand the existing trend in the market and attempts to capitalize on the same. So if a momentum investor feels that the bull run in the market will continue he/she will buy stocks which have outperformed the index. If he/she feels that the market is about to enter bear phase, then it makes sense to sell stocks that have under performed the index.
Percentage from 52W High
The percentage difference between the 52 week high price of the stock and its closing price
Suppose the 52 week high price of the stock is Rs.120 and the current close price is Rs.90, the output is calculated as (120 / 90) -1 = 33.3%. For example, a value of 3% would mean that the 52W high is 3% away from the current stock price
Percentage from 52W Low
The percentage difference between the close price of the stock and its 52 week low price
Suppose the 52 week low price of the stock is Rs.120 and the current close price is Rs.190, the output is calculated as (190 / 120) -1 = 58.3%. In this case, an output of 3% would mean that the stock is 3% above the 52W low price
Daily volume
Volume refers to the total number of shares of particular company traded in the stock market on a given day.
Usually multiple transactions in the scrips of a company take place every day. Every transaction has a buyer and a seller. Shares that are agreed to be exchanged during each such transaction is added to the total volume count once.
| Buyer | Seller | No. of shares traded |
|---|---|---|
| A | Q | 100 |
| C | R | 3600 |
| X | D | 178 |
| Total volume | 3878 |
1 month average daily volume
This is the simple average of daily trading volume of a security going back over the previous 1 month. If the average volume of security is high it shows that lot of people are willing to trade in the security and trades in the security can be easily executed.
| Company name | 1 month average daily trading volume |
|---|---|
| A | 10,00,000 |
| B | 3,000 |
In the above example in case of company A, on an average 10 lakh shares of the company are being bought and sold on daily basis over the previous 1 month. So if a person is looking to buy 1000 shares the order will be easily executed. However in case of company B, the 1 month average trading volume is just 3000 and an order to trade 1000 shares is approximately 33% of all orders on any given day. If the trader is looking to buy, share prices of company B will start trending up because of the huge volume in flow. Similarly share prices will tank if B is looking to sell large number of shares at single go in an illiquid stock.
3 month average daily volume
This is the simple average of daily trading volume of a security going back over the previous 3 months. If the average volume of security is high it shows that lot of people are willing to trade in the security and trades in the security can be easily executed.
| Company name | 3 month average daily trading volume |
|---|---|
| A | 8,00,000 |
| B | 4,500 |
In the above example in case of company A, on an average 8 lakh shares of the company are being bought and sold on daily basis over the previous 3 months. So if a person is looking to buy 1000 shares the order will be easily executed. However in case of company B, the 3 months average trading volume is just 4,500 shares and an order to trade 1000 shares is approximately 22% of all orders on any given day. If the trader is looking to buy, share prices of company B will start trending up because of the huge volume in flow. Similarly share prices will tank if B is looking to sell large number of shares at single go in an illiquid stock.
1 day percentage change in volume
This is the percentage change in trading volume between 2 consecutive trading days. If the current day trading volume is 85 and the previous day trading volume is 72, 1 day percentage change in volume is calculated as (85/72) – 1 = 18.05%.
1 week percentage change in volume
This is the percentage change in trading volume over the previous 1 week. If the current day trading volume is 79 and the trading volume 1 week ago was 89, 1 week percentage change in volume is calculated as (79/89) – 1 = -11.23%.